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Silicon Graphics Seeks Court OK for Loan Tuesday September 5, 2:05 pm ET By Kristina Doss, Dow Jones Newswires Silicon Graphics Seeks Court OK for $115M in Exit Financing WASHINGTON (AP) -- Silicon Graphics Inc. is seeking bankruptcy court approval to borrow $115 million to help it leave bankruptcy. In court papers filed Friday, the company said General Electric Capital Corp. offered to provide it up to $30 million in credit and Morgan Stanley Senior Funding Inc. offered an $85 million Mountain View, Calif.-based Silicon Graphics, which makes high-performance computers, filed for Chapter 11 protection on May 8. The filing was prompted by declining revenue caused by poor investments made in the 1990s and competition from larger rivals. It listed assets of $369.4 million and debt of $664.3 million. The exit financing, Silicon Graphics said, will be used to repay a credit facility, make payments required under its Chapter 11 plan, and meet working capital and other corporate needs. In June, Silicon Graphics won bankruptcy court approval to borrow up to $130 million from bondholders Quadrangle Master Funding Ltd., Watershed Technology Holdings LLC and Encore Fund LP. Under the proposed Chapter 11 plan, control of the reorganized company will go to Silicon Graphics' senior bondholders, who will swap about $191 million in bonds for a controlling stake in the reorganized company. The senior bondholders are expected to recover between 26 percent and 67 percent of the amount they're owed. General unsecured creditors, owed $33.9 million, will recover about 26.5 percent on their claims. Silicon Graphics expects to cut its total debt to $70 million from $345 million under its proposed plan. A hearing on the company's request for exit financing is scheduled for Sept. 19, the same day it will seek confirmation of its Chapter 11 plan in the U.S. Bankruptcy Court in Manhattan. |
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| Autor (Datum des Eintrages): | lila-2000 (05.09.06 22:05:28) |
| Beitrag: | 77 von 124 (ID:23780458) |
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